Ladies and gentlemen, good day and welcome to Mahindra Lifespace Developers Limited Q3 FY 2025 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Kumar Sinha, MD and CEO of Mahindra Lifespace Developers Limited. Thank you and over to you. Thank you, Steve. Very much appreciated. Good morning, good day to everyone, and welcome to our Q3 FY 2025 earnings call. At the outset, I would like to thank everyone for participating in this conference call. I have the benefit of having our CFO, Avinash Bapat, also with me, and also have Vimalendra Singh, who is the Chief Business Officer, Residential, and Sriram, who is our VP Finance, who looks after all the partnerships, FP&A, and investor relations. So all four of us there on the call, along with my colleague Simran, who looks after this specific function with Sriram. So let me just cover a few things very quickly. I know all of us are trying to understand what happened on Saturday on the budget side. We're still evaluating that. But overall, we think that income tax and some of the other benefits will have a positive impact on the buying power of individuals. But we'll really understand the fine print over the next few days. But let me just cover four or five things. Let me cover a quick summary of what we see in the market. That's one. Number two, business development at Mahindra Lifespace sales, how that has been, launches, our IC business, and then I'll hand over to Avinash for some of the financial details. So start with, I think, on the market side, we see continued overall bullish and steady in the market continuing. Market at a Pan-India level continues to see healthy absorption growth at around 6% year- over- year. New launches are a little bit higher, more than 6.2% year- over- year. We look at the market in three segments: affordable segment, and we have come up with our own definition. It's not exactly the way government defines INR 50 lakh. It's less than INR 1 crore. We call it affordable. INR 1 crore-INR 5 crore is our premium, mid-premium segment, which is where we are actively participating. And we call luxury, which is greater than INR 5 crore, and in Mumbai context, that could be INR 10 crore-INR 12 crore. So the affordable segment, interestingly, over the last nine months has seen a degrowth. It's 59% of the overall market, but it's degrown from 64%-65% last financial year, similar time frame. The decline of affordable segment is made up by premium, mid-premium segment, which used to be 33%. Now it's 37%. And luxury segment, which used to be around 2%-2.5%, now it's close to 4%. So we see that some of the more premium and luxury, the top end of the segments are growing really well. One of the best indicators of how the industry is the inventory overhang. It's at a healthy level, 14 months. The moment it starts to cross 30 months or 36 months, we see that market is slowing down significantly. So overall, at a Pan-India level, it's a healthy market. In the three markets that we participate, Mumbai, MMR region, the absorption is 8.8% year on year to close to 73,000 units. New launches at 5.8%, and pricing has now stabilized at 5%. It was very high for the last few years, but it is stabilizing at 5%. Bengaluru, the absorption is close to 4% year on year at roughly 42,000 units. It has a little bit of higher base effect from the last financial year, similar time frame. The new launches have become larger these nine months, close to 10% year on year. Pricing continues to be very healthy for Bengaluru, 10% plus year on year growth. Pune is shaping up really well given focus on GCC, IT, tech sector, even some of the other industrial companies. The absorption is around 40,000 units, 4.2% year on year change. New launches, amazing level of activity there, roughly 50% growth. Pricing at a healthy clip, 6% year on year growth. Similarly, other cities, NCR, Hyderabad, for example, they were slow in the previous quarter, have picked up in the last quarter. Chennai, much smaller market, relatively speaking, it continues to have good absorption, good setup, new launches, and healthy price increase. So overall, good market from a volume point of view, from a growth point of view, from an absorption point of view, and even from a pricing point of view. Our competitors have done a good amount of business. Some have done better than the others. But the more important thing is the market has buoyancy. Most of the players are focusing on GDV acquisitions, making sure their balance sheet is strong enough to absorb the cost, the capital required to pursue these GDV additions. And we'll talk about our own also. We've done a very healthy amount of GDV acquisition in the last nine months this financial year. However, overall, we see while the GDV acquisition is very good, parts of the market, especially let's say Mumbai, have seen muted launches, I would say, relatively speaking, although it's the largest market. But approval delays because of national elections and state elections and many other things in between have had impact on delay. I'm hoping that things pick up on approvals in this quarter. And we'll talk more about our business shortly. So that's a quick summary from my side on the market side. Picking up from the previous set of business development GDV addition, for us at Mahindra Lifespace, during the nine-month FY 2025, we have completed GDV addition of roughly INR 14,000 crore. And if you include the transaction we did 10 days back in Bengaluru, it's another INR 1,000 crore. The last transaction was in the last quarter, but since we're having the call a few days already into this quarter, that was in Bengaluru, eight acres near the airport. We have added the key highlights of GDV addition: INR 14,000 till nine months, and 10 months is INR 15,000 crore. We have signed up a major land parcel in joint development, 37 acres in Bhandup. It's roughly four million RERA net area, 6.4 million saleable area. Target potential is INR 12,000 crore, which is going to be a significant one for us in the heart of central suburbs. Earlier in the year, we had talked about Saib aba Nagar, Borivali, seven societies, INR 1,800 crore, and then we had also done a small acquisition of INR 250 crore GDV next to our previous project, Mahindra Zen, so it's a contiguous, the same common boundary, so including the airport, Bengaluru acquisition, these are the four major acquisitions that we have done so far in this financial year. We continue to see attractive opportunities for land parcels in our core market. As I had explained in the previous discussion, we are very disciplined about the financial returns on these acquisitions. Given the expectation of landowners, partners, we just want to be thoughtful about what kind of financial return it provides for us in future years. Sales, we achieved a pre-sale of INR 1,749 in the nine-month FY 2025 versus INR 1,243 crore in the nine-month for last financial year. Reflects 41% growth. The quarter three has been muted, as I mentioned, not only for us but for many of the other industry participants. We had a INR 334 crore in quarter three versus INR 443 crores in quarter three of FY 2024. And I think we'll make it up in the next quarters. The reason is we got one approval on 31st of December for RERA IvyLush, which is the Wagholi land that we had bought last financial year. And similarly, we are expecting a couple of other approvals. In nine-month FY 2025, our new launch sales contributed INR 1,019 crore, 58% of the INR 1,749 crore overall sales. Most of the Q3 revenues was driven by sustained sales across our projects. So that's our sales summary. I will quickly cover launches now. The nine-month FY25 sales were primarily driven by launches like Mahindra IvyLush, which is the erstwhile Wagholi Crown codename, Mahindra Zen Green Estates early in the year, and Kalyan- 2 phase II in July 2024, and we'll come out with public announcement on each of them, but Mahindra Zen was quite successful. 96% of inventory sold already within the nine months of this financial year when we launched it. Similarly, IvyLush has 63% of inventory sold. We could have pushed more, but we are holding back given the realization of a specific tower that is a premium tower. We think that it will gain momentum as the project starts to see more construction and comes to show what kind of designs we have brought to the market. That's the Zen market. The second plotted development that we did this financial year has received good response, and we have sold more than 50% of that already. Following the strong response for Phase I of IvyLush, which was earlier in the year, we have confirmed the phase II launch. The total GDV of this project across phase I and phase II was INR 1,400 crore. More than 50% has come up online in phase II, IvyLush phase II, and we'll see the impact in this quarter. Overall, early indications are very healthy for us. Other launches for the year with the Tathawade new tower we had launched, GDV of INR 150 crore-INR 200 crore. Kalyan- 2, another INR 225 crore-INR 250 crore. In quarter four, FY 2025, we have planned for three major launches. Vista phase II in Kandivali, we are awaiting the final approvals. Zen 2 in Bengaluru, which is contiguous to Zen 1, and then in Citadel, we are launching a new tower, which we have received all the approvals already, so now it will be visible to us in the pipeline. Navy in Malad, it's a redevelopment. It's expected to be launched in quarter one. It might slip to first month of quarter two, depending on the whole. It's a large society. We just want to make sure we ensure a smooth transition for the existing members as well as a launch, which is a very positive launch that we are planning, so that is Navy, and then Project Pink, which was to be launched in this financial year, is awaiting final approvals. So that's been there in our pipeline for some time. We hope to fulfill all the requirements as per the government needs. Our Sumitomo business as part of ICICI, so next is ICICI business update. And Sumitomo is a key part of this update, as you know. We had a very healthy partnership for Origins phase II Chennai. We signed an extension of that contract, that relationship for Origins Chennai phase II-A. And also signed an MoU for phase II-B. So they're going to be a long-term partner with us for all the industrial activity that we see in Chennai on the private industrial park side. So that is an INR 225 crore, 60% contributed by us, 40% by Sumitomo. So it's an exciting way to extend our partnership together. Our overall IC and IC business has strong growth levels. As you know, it is an area which allows us to attract all the industrial companies from around the world who find our industrial parks, world cities, quite favorable. The China Plus One, domestic consumption, PLI, all these stories are attractive to many of them, and we help them with the plug-and-play infrastructure. During the nine months of this financial year, leasing of 47.3 acres was done, around INR 209 crore, with Mahindra World City Jaipur taking the lead, almost 75% coming from that. Mahindra World City Chennai was 5.6 acres with roughly INR 26 crore. And then Origins Chennai with a revenue of INR 14.7 crore. Quarter three, leasing was around 12.4 acres, translated into a revenue of INR 47 crore. We also had a very healthy pipeline. Some of these closed in the first week of January. Otherwise, the number would have been slightly higher for quarter three and then first nine months. But eventually, they'll all be coming up in our financial year, FY 2025. Very healthy pipeline, a lot of interest in India from many industrial clients. So we look forward to working closely with them to give them a ready-to-move-in plug-and-play infrastructure. From a funding point of view, the aspiration that we set out to resolve or to pursue requires a good capital commitment, and we're working towards this. We're looking at, we have had three very positive developments on the capital side. One, as I mentioned, was Sumitomo. The second one was a capital reduction. I was asked to cover that with Actis. And the third one was the additional dividend given the performance of Mahindra World City Jaipur interim dividend that came in. That helps us from upstreaming cash from our subsidiaries to the parent book. That is very helpful for us as we plan our growth aspirations. Overall, I think business is good. We have a lot of work to do. Major development is on the GDV side, as I had explained in the previous call, that that's an area that I really want to pursue so that we are setting ourselves for a very sustainable portfolio of GDV for multi-years rather than chasing every deal or small deals every year. That's overall on the business side. I request Avinash to take over on the financial side. Thank you. Thank you, Amit. As you all know, we follow the Ind AS methodology for accounting. That's over and above a couple of our key operating entities in the residential business, like Mahindra Homes and Mahindra Happinest. And even in the IC business, both Mahindra World City Chennai as well as Jaipur, we do not consolidate them on a line-by-line basis. So we account for the profit share from these entities. Let me talk about the nine months first, and then we'll come to Q3. Our total consolidated income stood at INR 408.4 crore in the nine-month FY 2025. This is against INR 224.5 crore previous corresponding nine months of the previous year. This shows the healthy growth that Amit talked about earlier. The consolidated PAT after the non-controlling interest, that stood at a loss, actually, of INR 23.8 crore in nine months, as against a profit of INR 26.8 crore in nine months of FY 2024. We've been expecting a few OCs. Those have got pushed out. In fact, a couple of transactions have also gotten pushed out in Q4. So we hope to improve this performance in the coming quarter. Let me talk about cash. The net operating cash flow, excluding the outflows towards land, this was at INR 600 crore in nine months of FY 2025. This is, again, a healthy growth as compared to INR 459 crore in the nine months of FY 2024. So this is reflecting the strong collections in residential as well as the IC business. I should mention this, and Amit alluded to that earlier, is that apart from these operating cash flows, we had a good run in the financing cash flows as well. All the three things that Amit talked about earlier, which is the Sumitomo-related infusion, the capital reduction, as well as the dividend, fetched at least around INR 300 crore during the nine months. So that's a healthy thing to add to our inflows. Talking about Q3, the consolidated total income stood at INR 185.8 crore, thanks to the OC that we received for Vicino. This is against INR 88.8 crore or INR 90 crore in FY 2024 Q3. The consolidated PAT is for the quarter only now, after the non-controlling interest. That stood at a loss of INR 22.5 crore in Q3. This is against a profit of INR 50 crore previous year Q3. On the debt side, we have gross debt of about INR 1,500 crore and cash balance of about INR 600 crore. That brings our net debt to INR 920 crore on a fully consolidated basis. We've been able to manage or keep our borrowing costs at a healthy level. It has been sub-9%. 8.9%, to be precise, is the cost of debt on a consolidated basis as of December 24. The net debt to equity, and we have been talking about this earlier, this was close to about 0.26 in the previous quarter. There's a slight jump here to 0.5, still at a healthy level, again, on a fully consolidated basis. This kind of reflects something which, again, Amit mentioned earlier, multiple GDV additions that have happened during the quarter as well as nine months. We have been basically maintaining our balance sheet in such a way that when we need, we can have the flexibility to raise debt as well. So that comes to about 0.5 on a fully consolidated basis. Just to reiterate, just as mentioned by Amit, we are exploring a couple of other funding options, and we'll let you know once we have some decision on that. Thank you. If you have any questions, we can go ahead with this. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Sen from RoboCapital. Please go ahead. Thank you for the opportunity. So we know that the launches of Q4, sorry, but what are the potential launches for full year FY 2026? Hi, Aditya. Thank you. Great question. Actually, we are gearing up for our FY 2026 as well, so I touched upon Navy, for example, which was supposed to be this financial year, but this is our first redevelopment which is close to launch, so it is like three different RERA that we have to get within the same project, so that is one of the key ones for us. Alembic, we are awaiting some form of approval. There was a new note that had come up about the road width and all, so we're trying to sort that out, but this is a great location in Whitefield next to the Hope Farm Metro Station, INR 1,800 crore GDV, so maybe INR 1,000 crore, close to INR 1,000 crore. Alembic is close to INR 1,800 crore. We are awaiting some policy approval for Citadel phase III in Pune on Pimpri-Chinchwad Road. That's the third one. Then the Saib aba, which is the society redevelopment that was signed in July, I think. Given the learning we have from Navy and WestEra, we are trying to catch up on the pipeline so that we don't make the same, we're able to manage the time delays that are typically associated with society redevelopment. Then, obviously, Bhandup is something we are very excited about, and we are tracking that on a weekly basis, how best to launch. Our target is quarter four of next financial year. There are a couple of others which are small ones that will also help us in our FY 2026 targets. All right. And one more question. Given that we operate in around mid-segment projects, so what is the EBITDA that we internally target for our projects? What is the EBITDA you said, right? Yeah, that's the internal target for our projects. Yeah. So let me answer the question in two parts. First is, I would say we're targeting mid-segment alone. I think we are targeting mid-premium and premium. As I explained earlier, sub-INR 1 crore, we would call it affordable. INR 1 crore-INR 5 crore, we'll call it, let's say, mid-premium and premium. Bengaluru and Pune would be, let's say, mid-premium by price point, but they are luxury in by luxury or premium in terms of specs and what we provide to the customers. So that's the sweet spot for us, so mid-premium and premium. And beyond INR 5 crore, we call it, let's say, luxury. So that's the definition we have. And that's something we will continue to pursue as part of our, let's say, business strategy. Did that answer your question? Actually, I wanted to understand what is the EBITDA that we target in our respective segment? We don't look at EBITDA per se. We look at, sorry, I missed that question. We look at the IRRs of the business. The way we look at it, and there is a project IRR. Our goal is to be the project IRR with the right cost assumption, right pricing assumption, and velocity assumption. We target 20%+ EBITDA, sorry, IRRs. The business always has surprises given its long-term four, five, six, seven years. When we target something like that, we have a couple of percentage points to dilute if we have to. 18% is something that we want to deliver to our shareholders, but we target now 20% with the right cost assumption on the IRR side. All right. And just a bookkeeping question. How much revenue are we going to recognize in the next two years, FY 2026 and FY 2027? So at this point in time, it would be difficult to answer this question. We would rather, when we go into the next financial year, we'll probably give some guidance about what we are looking at from a pre-sales perspective, but not the exact accounting. I think it's pre-sale. Are you talking? It's the revenue recognition, which is linked to OC. Which one are you asking? I'm asking about revenue recognition. Yeah. So revenue recognition linked to OC, right? So I think let me just try, Avinash. So I think it's what we target. We are so much constrained by the approval process that typically we control the construction, getting the apartments and the whole landscape and everything ready. But many times, just the delay associated with final OC, sometimes part OC, and sometimes full OC is a big question mark. So we can explain what we have in the pipeline, but I hate to say something and then backtrack because we don't have the approval. So that's something I don't want to do. The way we look at the business is how much is the pre-sale that we are targeting. And I've given a long-term guidance on that, right? Okay. All right. So those are my questions as of now. I'll call back in a few. Yeah, and if you have any further questions, we'll follow up offline. Yep. Sure. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead. Yeah. Thanks for the opportunity, and just a couple of questions. Firstly, on launches for Q4, you mentioned the names. If you can just highlight on what's the GDV potential of these launches. Yeah. So for Q4, Vista phase II would be roughly INR 1,200 crore-INR 1,400 crore with the phase II. We are not going to launch the retail part. It's the residential part only, so residential remaining part. So almost all of that, we may keep some inventory, which is, let's say, we don't want to worry about velocity. Price realization is critical for us on that. So that's Vista phase II. You heard my point about we got IvyLush that RERA came on 31st of December. All of that will have an impact in this quarter four. So that's roughly INR 700 crore-INR 750 crore that have been launched in Pune. We are in the last phase of approval process for Malgudi- 2, Bengaluru. It will be close to INR 250 crore of inventory. All of that will come. It's just one tower, I think, 70-75 units. The only reason we did that is because it's next to Zen-1 or Malgudi- 1. You use the name interchangeably. Then there is one specific tower of Citadel, Tower I, which we have gotten the approval already. That's again in Pune, so somewhere around INR 150 crore-INR 175 crore. That's our current. There is one more which we've been waiting for some time. I'll say it, but I'll keep my fingers crossed as the Project Pink, which is another INR 200 crore in Jaipur plotted. Everything is ready. We've just been waiting a long time for some of the approvals from the local authorities. Got it. That's pretty helpful. And just on Thane, I mean, FY 2026, you mentioned a whole lot of projects. I think a couple of projects are missing there. One is Thane and one is Santac ruz. So status on both, and particularly on Thane? Yeah. Yeah. So Thane, we had three steps of the process of approval. Step one was getting that out of 63-1A happened a few months back. We discussed that on the previous call. Step two is making it into a R zone, so as part of a DP plan. So that process is going on given the new DP plan, draft DP plan has come out, and we had some observations, some objections, suggestions, etc. So that process is going on. Once that gets concluded, hopefully, we'll have clarity how big of land parcel we can develop over what period of time. And it's very close in terms of clarity on whether and how that will happen. So I would have loved to give you the previous question that we had to include Thane, but I just want to wait before saying anything and then staying firm on that. And the phase III of approval, Thane, and then going through the regular IOD, CC and RERA process and EC, all those things. So that third phase hasn't started. Phase I is complete. Second is in progress. We'll know in the next two, three months. So that's Thane. WestEra is relatively slow for us. We had hoped that this will get launched this financial year. We found that there are some issues when two societies want to come together. The amalgamation process has very different expectations by different societies. We are trying to resolve that in a smart, efficient manner, but it's taking time given the two different parties on two different sides. Hopefully, we'll have clarity. We'll keep you updated on that. Sure. And just taking this forward, I mean, yeah, we have two societies. I think Saibaba Nagar, we have seven or so societies. I think what are the learnings that you are taking from Santac ruz to Borivali to ensure that I think timelines are much shorter on that? There's very different. It's a cluster redevelopment, Borivali versus WestEra was not, so there are three learnings, and one learning is choose the right policy for multiple society redevelopment and cluster redevelopment, very suitable. It's moving faster than we typically would have time. The second is the documentation process, the DA process, how to actually maneuver, which has a design component, the PMC lawyers and lawyers from the other sides across all. How do you work with them in a very, very constructive, creative, but transparent manner? That DA process is including the design part, you have to get alignment. Think of it, you have, let's say, 700, 800 people who act like landowners, right, so that's something we have to manage very tightly, and the third part is understanding where are the pitfalls of what to do and what not to do. So from Navy, we realized that, hey, while it was one project, it turned out to be three plots were seen as three different RERA. We had to do three CCs, three IODs, three CCs, three RERA. And it just made the timeline three times longer. And that's something that we have learned a lot, I think, and we're getting better at it. But these are something we didn't know when we got into it. We assumed a few things, and then we were corrected and humbled along the process. Now we know some of those things, and we have a whole crew of team that knows what to do and what not to do. Got it. Got it. That's very helpful. And does this delay, by any means, change your IRR targets? And obviously, I think WestEra, we did a couple of years back. Relations there to now has obviously changed, so we might get help from them. But in a stable market with not much price increase, how does these delays impact your IRRs, or are all these already incorporated when we anyways underwrite? Yeah. Yeah. See, I think the IRR delays matter if you have put capital upfront, right, in terms of society redevelopment. The reason society redevelopments are popular because you don't have to put capital till you vacate the residence. So you delay it. But if you have two resources, one is a capital resource, the other is a time resource, right? In society redevelopment, your time resource is very heavy. Capital resource is less heavy, right? Both have an impact on IRRs, right? But right now, what we are trying to do is, as I said, the learning that we have from other society redevelopment that we are doing in Borivali. I think we know how to balance both, right, where to deploy capital and where to deploy time as a resource. A quarter or two, so we have some contingency that we always plan in our timeline, knowing with the society redevelopment. But since we haven't put too much capital upfront, very little capital, it doesn't hurt us big time. But for every other project, time is a huge resource. We have to always factor in that it's all about momentum. If we have gotten something, a DA or a LOI, we need to really launch the land to launch or commitment to launch has to be as fast as possible given the nature of the industry. So we've gotten that done on the JDA side, on the land outright side, but society redevelopment has its own challenges that we are working through it. But to answer your specific question, we track the IRR very specifically. We have some contingency. But in case of society redevelopment, since you don't put a lot of capital, it doesn't hurt you that much. Got it. That's very helpful. That's it from my side and all the rest. Thank you. The next question is from the line of Shreyans Mehta from Equirus. Please go ahead. Yeah. Hi. Thanks for the opportunity. My first question is on Bhandup again. So can you quantify our share in the GDV or the margins which we'll be making on that project? Number one. Number two, given the size of this project, how do you intend to fund the construction cost? That's the first question. Yeah. Thank you, Shreyans. It's a very exciting project for us. So very large project. This is like five years of GDV that we did in one project together, right? So it's very exciting. We followed a similar financial discipline, same IRR base. Given this is a longer duration, it can go from anywhere from 7 to 10 years given 4 million RNA. We are targeting around 18% IRR from the project. But with some cushions for upside and some cushions for protecting us from downside, both the things we have done well and. Hello? Hello. Sorry to interrupt. The line for the management has been disconnected. Please wait while we reconnect them back. Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go ahead. Yeah. So I think I was answering questions that Shreyans here had raised about Mahindra. So you had asked a couple of questions. The first one was what kind of margins, etc. We target, again, similar financial IRR target. Given it's a long gestation, long duration, we are targeting 18%. With some cushions and upside that's there that we'll hopefully realize. Then we have protection against some of the downside scenarios as well. Given during this time, you're likely to hit a cycle either way, right? That's the first question. The second is the revenue share arrangement we have is 29.5% for bulk of the transaction. That's for every INR 100 crore that we collect, the landowner gets INR 29.5 crore. That's part of joint development. There are some tweaks here and there depending on how the transaction shapes up. That's the first. The second The second part. The third is your question about how do we fund this. So right now, I think we are in a healthy position. We have our internal accruals. We have some more room for expansion on debt-to-equity side. But we want to be very conservative. We don't want to cross 0.6. That is what our aspiration is. We are also looking to tap, not specific to Mahindra, public market or private markets. Both are open for us. So we have enough avenues. And as I've said in the past, we have strong support from Mahindra Group given the growth agenda aspiration from this business. So we're likely to have good backing. So it will be a combination of all of these like our own balance sheet, our own accruals, public market, private market, all of those things are open for us. We're looking for the best and the most flexible option. Sure. Second question is Thane. So Thane we put. We are We are going exclusive to INR 7,000 crore-INR 8,000 crore GDV. So just to clarify, is this still residential, right? Or this still includes some commercial? Yeah. So we want to create flexibility for us. So I think we want it to be R zone. And that's where we are working on the approval process. But if you have to do some commercials, in the past, when we look at IITT policy, we were going to be mandated to do 50% commercial. And then OCs have to be linked. So very different kind of requirements and constraints. So we want to have the optionality rather than constraints. So we are looking for the right approval as part of the DP plan process. Yeah. Got it. Got it. And last question on the BD pipeline. So actually, we are closer to INR 35,500 crore. So in terms of the balance INR 100 crore, how should one look at it? And secondly, in terms of since majority is through, would we now focus on execution and we'll see new projects coming on stream gradually, or how should we look at BD? Yeah. Yeah. No, I think Shreyans, you really asked a great question. I think I'll go back, I think, 18 months back when I took over formally, and one more thing that we had talked a lot about, do we have enough GDV or not? And we have really worked on a good-sized project of clear guardrails on what we want to do. We've taken some tough calls in terms of we'll not do affordable. We will take a backseat on NCR and Nagpur and Hyderabad. We will focus on a few geographies. We'll focus on specific customer segment and so on and so forth, and we'll be very prudent about our GDV additions. Now, if I look back where we are, we have if I include Mahindra, if I include Thane, if I include Alembic and Navrat and many others that you know of very well, we have roughly INR 30,000 crore of GDV that's with us already, and our aspiration was INR 45,000 crore, so that's two-thirds already, and we have a very active pipeline. My sense is we will not, in the short term, our focus will shift away, not away, but kind of our priority would be execution, as you said, so how do we accelerate our journey from land to launch, right? That's something that we have to really solve, and obviously, part is internal like design and all the value proposition that we want to provide to our customers, but part is external, and that's something we can't control from a timeline perspective. But we always do the right thing in terms of design, in terms of everything there. So that's something we are focusing on. But then comes the execution. It's a long construction cycle, three, four, five years, depending on the size. And we need to really, really execute and provide a great product, great solution to our customers. So our priority, which was, hey, do we have enough raw material? That seems to be getting resolved. Now we'll go back into stable mode on that. But now we have to focus a lot more on land to launch and execution, which is land to OC. That's launch to OC. That's something we'll focus on. So you said it really well. That's going to be a bigger priority for us. Sure, and I think the clarity of the balance, you know, I've been working a bit pipeline looking right now, Mumbai, Pune. Yeah. Healthy. I can tell you you'll hear some good updates from us periodically on that. Sure. Sure. That's it from my side. Thank you and all the best. Thank you, Shreyans. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Yeah. Hi, Amit. Congratulations on a good quarter on business development. My first question is, what was the total land payment in nine months and how much is the pending payments on the existing land? Yeah. So Parikshit, the total of amounts related to land in terms of outflows was close to about INR 600 crore, between INR 600 crore-INR 650 crore to be precise. This doesn't include some of the approval-related cost and all, which kind of goes and sits in the project cost, although it is still pre-launch. That would be another INR 100 crore-INR 150 crore that would have gone in. What's the pending amount now on the existing land on these landmarks? On the existing one now, it's not too much. It's close to about INR 250 crore that is pending. But it's still over a period of time. It's not immediate. Okay. So now there are two things on which I basically want to delve a little bit deeper here. So one was that the debt is now elevated 9.2 times. Now we're looking at 0.6. So at some point in time, we have become constrained on funding to do business development. Now, do you think that the capital raise becomes more imminent as we grow into next year in terms of new business development? Yeah. Yeah. I think so. I think you're right. Beyond the 0.5 is actually comfortable. 0.6, given the DNA of Mahindra Group, we will have to look at it on a short-term basis only, not for long-term. We want to be below 0.5 for sure, and so you have three avenues, maybe four avenues. One is your own operating cash flow. Second is your balance sheet, which is your debt to equity ratio. Third is your private funds, private markets, and the fourth is public markets, right? The first and second is healthy for us. We'll have a great operating cash flow this year, but these first and second is not going to be sufficient to allow us to meet our aspirations. It will be perfectly fine if you wanted to grow at maybe 10%, 12%, 15%, but not going to be sufficient for, let's say, 20%, 25%, right? Even more. So that's where we need to tap into private capital as well as public capital. And each of them has their pros and cons. We are working very closely with our group finance organization, our leadership team there to make sure that we choose the right option. And to tell you, if we wanted, we could close something yesterday. But given the flexibility we want, given the pros and cons tied with each option, we are evaluating and taking our time to make sure it's the right choice for Mahindra Lifespace for the long term. Yeah. So I think this point was debated last call also. So you did highlight that you're looking at INR 3,000 crore of fundraise. The only contention here was that to have it more flexible, flexible capital than constrained capital, creating more bureaucratic lines if we are doing it through private equity. I think you did highlight last time that maybe future BD will be entirely through private equity. So just the feedback I would like to give is that whatever you type at the end of it should be more flexible in nature rather than bureaucratic. Yeah. Absolutely. Absolutely. Yeah. 100% agree. And that's why even the private equity has different types. There are some more operationally, let's say, bureaucratic. I use the word, and some are less, depending on the type of the investor. So we are, and that's why I think we have to set up the business for success. If we are going to give an 18%-20% return to a partner, it should align well with our ways of working, our thinking, our approach to this business. So 100% agree. And that's what I said. If I wanted to close something just on just, "Oh, we need capital," and let's close the earliest option, we would have closed it many days back, many weeks back. But as you said, we will be very careful about the constrained capital part. We're taking our time to make sure that it does not unnecessarily burden our ways of working, our growth aspiration, our style of our operational independence. Any timelines of likely closure and some decision, what timelines do you think, and whether the quantum remains at INR 3,000 crore or do you think can be lowered or increased? Parikshit, the quantum kind of varies a little bit. As you know, the joint development agreements or society redevelopments may not necessarily need that kind of cash outlay. So the INR 3,000 crore is more of a guideline. It does keep changing. So that's one. In terms of timeline, yes, you're right. Again, we will carefully evaluate that we don't need to go too much in terms of net debt to equity ratio and manage the timing in such a way that whenever we need to match those outflows, we have sufficient funding that is available with us. So we will see something in the coming couple of weeks, something like that. Okay. So within this financial year, something will get crystallized? Yeah. Something like that. Okay. Last thing, Amit, you did say that there are some more announcements which may happen on business development side. So we're expecting this to get before March. These announcements may come in before March. Yeah. Yeah. Parikshit, we'll keep you excited with our pipeline, so. Now, traditionally, the sizes have gone up. I mean, we have been hearing more INR 1,000 crore, more INR 1,800 crore, so kind of deals. Ballpark in that range, we have some more closures happening. We will supersize ours, as I promised, Parikshit. Our one-on-one also supersize the deals. Absolutely. Same effort required. So why not do the right-sized deal? Got it, Amit. Thank you so much. I wish you the best. Thank you. Thank you. The next question is from the line of Ayush Soni from Choice Equity Broking. Please go ahead. With reference to the fund raise, I mean, what level do we see our debt closing at in the next one to two years? Do we stick to a net debt to equity of 0.7 to 1 range, or do we see that going up? Sorry, we're not really able to hear you well. Can you please repeat your question maybe a bit slower? What I'm asking is, where do you see your debt levels closing at by the end of this year or by FY 2026? So how we are looking at this is currently, we are at 0.5. We would prefer to not go beyond 0.6. There are a few competitor players who have gone up to 0.7, some people even beyond 1. But being conservative, we would want to keep it at about 0.6. We do have healthy operational cash flows. So we don't expect the 0.6 to be breached, say, in the next two quarters, if that is helpful to you from a question perspective. Okay. Thank you. Ayush, I just want to clarify that we may have our answer to Parikshit's question and another question before that. Our goal is to supplement operating cash flow, debt to equity with some other sources of funds. So there could be ups and downs, which might be specific for a specific quarter. But our long-term goal is to keep our debt to equity ratio below 0.5. So that should give you a rough guidance in terms of how we are thinking about it. Okay. Thank you. Thank you. The next question is from the line of Aditya Sen from RoboCapital. Please go ahead. Hi. Thanks for the opportunity again. So can you please share the list of projects in which we are expecting OC in FY 2026? I understand there can be delays, of course, but we just want to understand it from a ballpark perspective. Yeah. So do you have the projects list? Yeah. So we have Luminare, which is the project that we have in Gurgaon. It is one last tower that's moving along well. Then we have Alcove. Actually, it has five towers. So C,D, and E is we have to do it next year as per our commitment. Then A and B should also get done if we are able to resolve some of the approval-related issues. Mahindra Eden in Bengaluru, which was our flagship project, which was the sustainability leader, is also expected to complete next year. Nestalgia, three out of four towers are expected to get completed next year. Happinest, Mahindra World City, Chennai, we call it P21 in our code name. That's also expected. And then there could be another project or so if we're able to launch Pink plots this financial year. It will also be expected to complete next financial year, so these are the five, six projects that we have planned for. All right. That answers my question. Thank you. Thank you, Aditya. As there are no further questions from the participants, I now hand the conference over to the management for their closing comments. Thank you, Steve. Thank you to all the participants. Thank you to all the folks who asked questions. I think I just want to highlight three things in summary. We see continued momentum in the business at the industry level, while the price and volumes that we saw in the last price growth and the volume growth that we saw in the last three years is getting more measured, more corrected to more realistic levels. We see the demand and user demand continue to be there for some time. On behalf of Mahindra Lifespace Developers Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.